Bitcoin (BTC) price continued rising, reaching its highest point since February

Bitcoin price continued its rally on Wednesday, reaching its highest point since February, as trade optimism rose ahead of the Federal Reserve decision. This latest rally has pushed Bitcoin’s market dominance to 65.70%, its highest level since January 2021.

Bitcoin (BTC) rose by 1.2% in the past 24 hours to $97,650 by 08:15 ET (12:15 GMT), continuing its recovery from this year’s low of $71,000, reached in March.

The cryptocurrency’s market dominance-which measures Bitcoin’s share of the total cryptocurrency market cap-climbed to 65.4% on Wednesday, its highest point since January 2021.

Bitcoin’s dominance has been rising this year as many altcoins, especially Ethereum (ETH), continue to lag the market.

Ethereum’s market dominance has fallen to 7.5% from a peak of 22.27% in 2022, while its price is trading at risk of dropping to a record low against Bitcoin.

Bitcoin’s dominance is at risk of a pullback

The weekly chart shows that Bitcoin dominance bottomed out at 38.86% in 2021 and 2022, before staging a strong rally to 65.4% today. It remains above the 50-week and 100-week moving averages, while the Average Directional Index has climbed to 43. An ADX above 25 generally signals strong bullish momentum.

However, the dominance has also formed a rising wedge pattern, while its Relative Strength Index has moved to the overbought level at 74.10. This is a sign that the dominance will have a reversal soon as investors rotate to altcoins. This rotation will likely happen when the dominance hits 72.92%, its highest level in December 2022.

Altcoins are forming a megaphone pattern

The weekly chart for altcoins (excluding Bitcoin) shows the formation of a bullish megaphone pattern, characterized by two diverging upward trendlines. The market cap has recently pulled back to the lower boundary of the pattern, indicating a potential rebound as bulls aim for the upper trendline.

Altcoins have also completed much of the bullish harmonic XABCD pattern and are now forming the final CD leg. As long as the market cap remains above the lower trendline, the likelihood of an upcoming altcoin season remains high.